RCI Class Action Lawsuit

In some RedWeek forums (and, to be fair, elsewhere as well) I have seen publicly stated misunderstandings and/or misrepresentations regarding this legal action.

To be clear, I'm NOT involved in (or associated in ANY way with) this litigation. Nonetheless, I thought it might be helpful and/or informative to provide an ACCURATE portrayal of this legal action. To that end, I am quoting VERBATIM (word for word) in pertinent part from the web site established by the plaintiff representatives:

"A class action lawsuit has been filed against RCI on behalf of all members of RCI's Weeks Program.

The lawsuit alleges that RCI improperly skims a large percentage of the timeshares from the RCI exchange bank system, including many prime timeshares, and rents those timeshares out to the general public for profit and also uses them for promotional purposes and as fringe benefits for its employees. The lawsuit further alleges that as a result of these practices, the actual experiences of many RCI Weeks Program members is that they simply cannot find any comparable exchanges." [End of quote]

I believe I have copied every word quoted above exactly, completely and accurately, but apologize if I have inadvertently made a typo error of any kind.

If the lawsuit is going to be discussed and debated, here or anywhere else, it should at least be discussed with some actual understanding of what the lawsuit alleges in the first place. Whether you agree or disagree with the legal action being initiated, or with its assertions, the above at least clearly identifies exactly WHAT this lawsuit is all about....

As I have mentioned before, the only people benefitting from this lawsuit will be the attorneys involved. RCI defense costs in this lawsuit will be passed onto RCI members via a rise in all RCI fees in order to cover that defense.

jayjay wrote:

As I have mentioned before, the only people benefitting from this lawsuit will be the attorneys involved. RCI defense costs in this lawsuit will be passed onto RCI members via a rise in all RCI fees in order to cover that defense.

What you have "mentioned before" is your personal opinion on the subject. You are entitled to that opinion and it is duly noted. I wish that I had your crystal ball to be so certain in knowing (and describing) the future.

Gosh, and here I thought that this was a timeshare discussion forum for ALL Redweek members, yet I'm not supposed to express my opinion concerning the class action lawsuit against RCI ????

Most Redweek members have never even heard of the lawsuit ... same as 99.9% of RCI members. People here are more concerned about scams/lies involving timeshares; upfront fee resale companies, postcard companies, lies developer salespeople tell prospective buyers, etc etc etc.

The lawsuit would best be discussed on Tug where most members are aware of the issue unless the owners have ceased discussion of that subject there. I haven't seen a topic concerning the lawsuit on Tug in many months, but when it WAS discussed many members had the same opinion as I do.

ken1193 wrote:

jayjay wrote:

As I have mentioned before, the only people benefitting from this lawsuit will be the attorneys involved. RCI defense costs in this lawsuit will be passed onto RCI members via a rise in all RCI fees in order to cover that defense.

What you have "mentioned before" is your personal opinion on the subject. You are entitled to that opinion and it is duly noted. I wish that I had your crystal ball to be so certain in knowing (and describing) the future.

Re: >> .... I'm not supposed to express my opinion concerning the class action lawsuit against RCI ???? <<

Jayjay, I could not possibly have been ANY more clear that you are absolutely entitled to express an opinion. My point was (and remains) that your opinion is *ONLY* an opinion --- it's NOT a statement of established fact.

Re: >> Most Redweek members have never even heard of the lawsuit ... same as 99.9% of RCI members. <<

So, accordingly, I posted the plaintiff's statement of lawsuit content, word for word, to INFORM folks who might not know (but might very well be interested). Some inaccurate information on the lawsuit had been previously posted here --- some of it by *YOU* in fact (you have cited "surplus weeks" and several other references which, in truth, are NOT contained or mentioned within the lawsuit AT ALL).

Those not interested in this subject matter can simply ignore subject post accordingly, but at least an accurate portrayal of WHAT the suit is about has now been posted openly.

Re: >> People here are more concerned about scams/lies involving timeshares; upfront fee resale companies, postcard companies, lies developer salespeople tell prospective buyers, etc etc etc. <<

Personally, I always welcome facts and information, particularly those offered with accuracy and specificity. Accordingly, I offer no apogies for making an attempt to inform others by providing a precise, verbatim quote of factual information, presented objectively. With all due respect, what "people are concerned about" is not for YOU to determine, unless you have been appointed group spokesman and I just didn't get the memo...... If folks are not interested, they can ignore accordingly.

Re: >> The lawsuit would best be discussed on Tug <<

Unless I missed another memo regarding your elevation to be this site's group spokesman, that's not actually YOUR determination to make. I posted a new thread as a member, within a General Discussion forum, to INFORM people. I offer no apology for objectively posting some factual, precise, objective information which, according to your very own statements, most people don't otherwise even know exists.

Frankly, I have no idea how this lawsuit matter will turn out. You certainly don't either, but you are nonetheless entitled to express your opinion (or, more precisely, your guess). Personally, I think I'll just wait for the COURT to make any determinations and/or other "proclamations" regarding the outcome....

touche' .... debate is healthy.

ken1193 wrote:

Frankly, I have no idea how this lawsuit matter will turn out. You certainly don't either, but you are nonetheless entitled to express your opinion (or, more precisely, your guess). Personally, I think I'll just wait for the COURT to make any determinations and/or other "proclamations" regarding the outcome....

Legal Update from Court on RCI lawsuit follows, quoted without any insertion of personal opinion or judgement. Case is Murillo vs. Resort Condominiums International LLC, District Court of New Jersey, 06-CV-1222 (WJM):

1. All discovery is stayed (i.e.,halted) pending further order of the Court.

2. Plaintiffs have until June 29, 2007 to file and serve their motion for class certification; then plaintiff must file and serve further support for their motion by August 10, 2007.

3. Within 7 days after plaintiffs file their motion for class action certification, defendant may seek leave of Court to serve discovery limited to the issues raised therein, and within 7 days after defendant files its opposition to class action certification plaintiffs may seek leave of Court to serve discovery limited to the issues raised therein.

Thanks, keep us informed.

jayjay wrote:

Thanks, keep us informed.

Now we know why, we can never get exchanges. Hope RCI pays for this.

Just what proof has been forwarded that this practice is happening?

fairwynd.timeshares.com wrote:

Just what proof has been forwarded that this practice is happening?

Actually, so far there has been no proof. When you have a jillion people wanting the same thing in a trade (most popular locations, higher end resorts, summer travel season, major holidays) then, of course, there will be a lack of inventory for the above criteria.

Also, you have people that will wait until the last minute or a couple of months prior to traveling to start looking for an exchange and they will get the left overs only. For hard to get trades RCI members need to deposit and start looking at least a year in advance.

It is my humble opinion that the only people that will get rich from this lawsuit are all the attorneys involved and all RCI members will have to take up the slack by having to pay higher fees in the long run.

jayjay wrote:

fairwynd.timeshares.com wrote:

Just what proof has been forwarded that this practice is happening?

Actually, so far there has been no proof. When you have a jillion people wanting the same thing in a trade (most popular locations, higher end resorts, summer travel season, major holidays) then, of course, there will be a lack of inventory for the above criteria.

Also, you have people that will wait until the last minute or a couple of months prior to traveling to start looking for an exchange and they will get the left overs only. For hard to get trades RCI members need to deposit and start looking at least a year in advance.

It is my humble opinion that the only people that will get rich from this lawsuit are all the attorneys involved and all RCI members will have to take up the slack by having to pay higher fees in the long run.

WE HAVE PUT IN FOR EXCHANGES 2 YEARS IN ADVANCE AND RCI CAME UP WITH NOTHING. WE ALWAYS DO ONE YEAR IN ADVANCE AND AGAIN NOTHING, SO I HOPE RCI WILL CHANGE THEIR POLICIES. THIS IS JUST ANOTHER REASON WHY WE ARE TRYING TO DONATE, GIVE AWAY OR JUST DUMP OUR TIME SHARE. WE HAVE NOT BEEN ABLE TO GET AN EXCHANGE FOR THE LAST FOUR YEARS WHICH IS NOT ACCEPTABLE TO US.IF WE DO KEEP IT, WE WILL NOT RENEW OUR MEMBERSHIP WITH RCI, BUT GO WITH REDWEEK OR USE THE UNIT. RPWHITE

richardw235 wrote:

WE HAVE PUT IN FOR EXCHANGES 2 YEARS IN ADVANCE AND RCI CAME UP WITH NOTHING. WE ALWAYS DO ONE YEAR IN ADVANCE AND AGAIN NOTHING, SO I HOPE RCI WILL CHANGE THEIR POLICIES. THIS IS JUST ANOTHER REASON WHY WE ARE TRYING TO DONATE, GIVE AWAY OR JUST DUMP OUR TIME SHARE. WE HAVE NOT BEEN ABLE TO GET AN EXCHANGE FOR THE LAST FOUR YEARS WHICH IS NOT ACCEPTABLE TO US.IF WE DO KEEP IT, WE WILL NOT RENEW OUR MEMBERSHIP WITH RCI, BUT GO WITH REDWEEK OR USE THE UNIT. RPWHITE

I don't know what you own or what you're looking for in an exchange, but it sounds like you may have a trade power issue with RCI. It wouldn't matter how far in advance you deposited your week and started looking if you don't have the trade power to snag what you're looking for.

jayjay wrote:

richardw235 wrote:

WE HAVE PUT IN FOR EXCHANGES 2 YEARS IN ADVANCE AND RCI CAME UP WITH NOTHING. WE ALWAYS DO ONE YEAR IN ADVANCE AND AGAIN NOTHING, SO I HOPE RCI WILL CHANGE THEIR POLICIES. THIS IS JUST ANOTHER REASON WHY WE ARE TRYING TO DONATE, GIVE AWAY OR JUST DUMP OUR TIME SHARE. WE HAVE NOT BEEN ABLE TO GET AN EXCHANGE FOR THE LAST FOUR YEARS WHICH IS NOT ACCEPTABLE TO US.IF WE DO KEEP IT, WE WILL NOT RENEW OUR MEMBERSHIP WITH RCI, BUT GO WITH REDWEEK OR USE THE UNIT. RPWHITE

I don't know what you own or what you're looking for in an exchange, but it sounds like you may have a trade power issue with RCI. It wouldn't matter how far in advance you deposited your week and started looking if you don't have the trade power to snag what you're looking for.

When we purchased our week at the Santa Barbara Resort & Yacht club, the salesman said we would have no trouble getting an exchange and we did not the first year and that was all. He also told us that the timeshares were a good investment for they would resale quickly and for a good price. HA HA

richardw235 wrote:

When we purchased our week at the Santa Barbara Resort & Yacht club, the salesman said we would have no trouble getting an exchange and we did not the first year and that was all. He also told us that the timeshares were a good investment for they would resale quickly and for a good price. HA HA

After checking out this resort, it looks like it's been closed due to hurricane damage and has re-opened or is scheduled to re-opened soon. The fact that it was closed down would definitely affect your trade power since you have had nothing to trade.

Old saying, "if a timeshare salesperson moves their lips, then they're lying" :o). Timeshares are NEVER good financial investments ..... the only investments they provide are quality vacations in nice accomodations. Developer bought timeshares are like new cars, once you sign on the dotted line your purchase immediately depreciates. Timeshares resale for approximately 1/4 to 1/3 of what was paid the developer IF they can be sold at all.

I have no plan to continue with RCI. Last year I was ripped off of my week at Orange Lake by them. then, they were unable to find another replacement near, wanted me to pay the extra money and had nothing at the same star level. Have been trying to rent/sell my tme share and was further ripped off by IBD.

carlenas wrote:

I have no plan to continue with RCI. Last year I was ripped off of my week at Orange Lake by them. then, they were unable to find another replacement near, wanted me to pay the extra money and had nothing at the same star level. Have been trying to rent/sell my tme share and was further ripped off by IBD.

I feel the same way as you do. My wife and I are definetly not gong to renew our membership which is due next year. We just received a new RCI Resort Directory and it has shrunk in size over half since 1996. The reason we think is that more of us have had enough of their rip off policies. Our resort is open now, but so far, we are trying to see if a charity can sell it for what ever amount they can get. If not, we will probably use it our selves in Sept. and then decide to take the chance and just let it go into foreclousure and see what happens. If we do keep it, we will either use our unit to avoid all the extra fees or try to do the Red Week exchange which sounds fair to us. RWhite

jayjay wrote:

richardw235 wrote:

When we purchased our week at the Santa Barbara Resort & Yacht club, the salesman said we would have no trouble getting an exchange and we did not the first year and that was all. He also told us that the timeshares were a good investment for they would resale quickly and for a good price. HA HA

After checking out this resort, it looks like it's been closed due to hurricane damage and has re-opened or is scheduled to re-opened soon. The fact that it was closed down would definitely affect your trade power since you have had nothing to trade.

Old saying, "if a timeshare salesperson moves their lips, then they're lying" :o). Timeshares are NEVER good financial investments ..... the only investments they provide are quality vacations in nice accomodations. Developer bought timeshares are like new cars, once you sign on the dotted line your purchase immediately depreciates. Timeshares resale for approximately 1/4 to 1/3 of what was paid the developer IF they can be sold at all.

this was our first experience with timeshare salesmen, so we assumed they would be honest for it was property. We would never fall again for their lies, and none of our many children will ever touch a timeshare, and they sure do not want ours, and they legally do not have to, for we would not will it to anyone, so it will go back to the resort when we die. If not before in the form of foreclousure because so far we cannot even give it away.

Interesting. Never heard of this lawsuit at all. We own a week (1 bedroom) at Las Vegas and usually put in for an exchange 1 year or less in advance. We've never had a problem getting in at the resort we'd like to travel to and have even been able to upgrade to a 2 bedroom at times. Of course, we're usually pretty flexible about our dates. But so far, no complaints here!

amandaa39 wrote:

Interesting. Never heard of this lawsuit at all. We own a week (1 bedroom) at Las Vegas and usually put in for an exchange 1 year or less in advance. We've never had a problem getting in at the resort we'd like to travel to and have even been able to upgrade to a 2 bedroom at times. Of course, we're usually pretty flexible about our dates. But so far, no complaints here!

============ What's really amazing that I can go to Endless Vacations (www.wyndham-vacations.com) and basically rent a RCI timeshare, but that same unit is not available for rent through the RCI Vacations link.